Anglo Asian suspends mining at Gedabek, might change production plan

BAKU. Aug 4 (Interfax) - Anglo Asian Mining plc (AAM), an AIM listed gold, copper and silver producer focused on Azerbaijan, has suspended mining indefinitely at the Gedabek contract area in western Azerbaijan and the operation of its flotation plant.

"As a precautionary measure, the Company suspended the operation of its flotation plant on July 31, 2023 in accordance with a draft protocol with the Government and has also stopped mining. The operation of the flotation plant will remain suspended until all environmental and safety deficits, if any are identified in the Micon Report, have been rectified," the company said in a press release.

AAM said Micon carried out a full environmental inspection of the Gedabek facilities on behalf of Azerbaijan's government and is expected to deliver a full report on their findings to the government and the company by September 8, 2023.

The suspension of the flotation plant will result in reduced production of approximately 400 tonnes of copper and 300 ounces of gold in August, AAM said. The company intends to carry out essential plant maintenance during the suspension of operation of the flotation plant.

The heap leaching operation continues as normal except no new ore is being placed on the heaps, but it is still expected to produce about 1,000 ounces of gold dore in August. Exploration is also continuing as normal.

"The Company will provide further updates on its production as appropriate and revise its production guidance for the year when the duration of the suspension of the operation of the flotation plant is known," AAM said.

It was reported earlier that the government decided to conduct an environmental impact study at Gedabek because of AAM plans to build a second dam for its tailing dump, which triggered protests from residents of Seyudlu, The study will include a second assessment of the technical and environmental aspects of the second dam.